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Sathish   17 October 2017

Gift settlement deed - witness sign by sons

Person X inherited his father's property by partition deed.  This person X has 2 sons and a daughter.  Person X is heavily debted, to save his property from court attachment, he gave the property to his daughter as "gift settlement to family members".  

this registered gift deed was signed by X whereas his 2 sons signed as witness.  Is this valid?

I'm the one who gave loan to Person X and his sons, and unable to attach his properties
if above gift deed can be cancelled, I can attach the properties

pls give your suggestions



Learning

 5 Replies

G.L.N. Prasad (Retired employee.)     18 October 2017

Contact your local advocate and establish a fraud in executing such nominal gift deeds.  First inquire into the facts as to whether the daughter has taken effective steps to exercise her rights on the property.   Even otherwise, legal heirs are accountable for debts of Mr.X.  Act at the earliest and proceed legally before the debt becomes time barred.(the date of such debts and the date of registration of gift deed, further actions of the daughter to exercise her rights must be proved)

Gifting a property at the cost of family necessities and heavy debts  is itself cause suspicion of a conspiracy.

Kishor Mehta (CEO)     18 October 2017

(1) You should commence legal proceedings within three years of the date of loan. (2) In the event of the date of the gift deeds being later than the date of the loan, they can be proved malafide and set aside by the Court.

Sathish   18 October 2017

thanks all for the reply, I have already filed money recovery suite, unable to attach the properties of daughter as she did not borrow money from me and she is not a party in the suit.  

Is it possible to add her as defendant in suit, and claim loan amount from her as she received the properties of her father, father is unable to pay the debts and filed insolvency.

After adding her as party, I can attach her properties

P. Venu (Advocate)     18 October 2017

Please examine whether the gift of the property could be established to be a fraudulent transfer.

Sathish   18 October 2017

Mr. Venu:  

My lawyer says: I cannot file "set aside" suit under section 53 of TP act to cancel the fraudulent transfer of property to daughter with intent to defeat or delay the creditor.  I can file this suit ONLY after getting decree from money suite.  If I file now, it will be rejected.  Is this true?


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